Yellow Card Optimistic Amidst Nigeria’s Crypto Regulatory Shift

Exchange for cryptocurrencies in Nigeria Yellow Card takes the position that the new guidelines issued by the Central Bank of Nigeria (CBN) that lifted the restriction on cryptocurrency transactions allow increased legitimacy and integration with the traditional financial system and its interactions with cryptocurrency transactions, which might potentially lead to an expansion of Yellow Card’s user base.

Lasbery Oludimu, who is the chief data protection officer and vice president of legal, commercial, and product at Yellow Card, stated that the peer-to-peer market, which was once dominant during the ban, will alter as a result of greater banking support.

It is possible that this transition would encourage competition and innovation in the cryptocurrency market in Nigeria. As a result of the Central Bank of Nigeria’s (CBN) new instructions and the lifting of the prohibition on cryptocurrency transactions, Oludimu has affirmed that the exchange anticipates that the usage of cryptocurrencies will increase in Nigeria in the year 2024.

In her statement, she stated that this direction will guarantee and make possible a more organized and regulated environment for cryptocurrency transactions. The executive from Yellow Card stated that the reintroduction of banks would result in increased competition and enhanced transaction efficiency, both of which would be beneficial to the ecosystem.

Oludimu underlined that the instructions of the Central Bank of Nigeria (CBN) could have the potential to stimulate collaboration with traditional financial institutions to investigate opportunities inside the cryptocurrency field.

“This decision is a step in the right direction to foster innovation, as well as provide a conducive environment for legitimate businesses like Yellow Card to operate, thereby benefiting users, increasing the crypto adoption rate in Nigeria and the broader crypto ecosystem.”

This would pave the way for better integration and cooperation between traditional funds and digital assets. According to Oludimu, who highlighted the beneficial impact of the rules issued by the Central Bank of Nigeria (CBN), the new policy establishes a controlled environment, which in turn boosts confidence and trust in the Nigerian cryptocurrency sector.

Yellow Card expects that the regulatory framework’s clarity will lead to increased user adoption and engagement, appealing to more individuals and businesses interested in the cryptocurrency field in the coming months.

Oludimu claims that Yellow Card intends to pursue strategic collaborations, expand its user base, and make a contribution to the advancement of Nigeria’s digital asset ecosystem by delivering creative solutions that are in line with the recently established rules.

Rules for digital assets were announced by the Central Bank of Nigeria (CBN) on December 22, 2023. These rules will enable virtual asset service providers, which include firms that deal in crypto assets and cryptocurrencies, to open accounts with national banks in Nigeria.

This comes around two years after the central bank placed restrictions on the ability of banks and other financial institutions to operate accounts for cryptocurrency service providers.